Three Materials Stocks Poised for Significant Growth in Q4
Oversold Stocks Opportunity: The materials sector has several oversold stocks, identified by a Relative Strength Index (RSI) below 30, indicating potential buying opportunities for undervalued companies.
TriMas Corp Update: TriMas Corp's stock has fallen 17% over the past month, with an RSI of 29.9. The company recently increased its share repurchase authorization to $150 million.
Packaging Corp of America Performance: Packaging Corp's stock dropped 8% in the last month, with an RSI of 29.1, following disappointing quarterly earnings despite strong performance in its legacy packaging business.
Graphic Packaging Holding Insights: Graphic Packaging's stock fell 14% recently, with an RSI of 28.5, despite reporting positive third-quarter results and reducing inventory, indicating challenges in consumer volumes.
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- Fed Meeting Outlook: Markets anticipate the Federal Reserve will keep interest rates unchanged at Wednesday's meeting, with the CME Group's FedWatch tool indicating a 97.2% probability of no rate change in January, which could stabilize market sentiment and reduce investor uncertainty.
- Major Index Performance: Following Tuesday's close, futures for major benchmark indices rose, with the Dow Jones up 0.04%, S&P 500 up 0.30%, and Nasdaq 100 up 0.74%, reflecting optimism about upcoming economic data and potential growth.
- Stock Movements: Seagate Technology Holdings surged 10.02% after reporting better-than-expected earnings and strong guidance, indicating enhanced competitiveness in the storage solutions market, which may attract more investor interest.
- Economic Growth Forecast: LPL Financial's Chief Economist Jeffrey Roach projects a 2.5% real growth for the U.S. economy in 2026, emphasizing that productivity gains will be crucial for economic expansion, providing investors with confidence in future market conditions.
- Microsoft Earnings Expectations: Wall Street anticipates Microsoft Corp. (NASDAQ:MSFT) will report earnings of $3.97 per share and revenue of $80.27 billion after the market closes, with shares rising 0.4% to $482.50 in after-hours trading, reflecting investor optimism about its performance.
- Packaging Corp's Weak Results: Packaging Corp of America (NYSE:PKG) reported fourth-quarter results that fell short of expectations, projecting first-quarter GAAP EPS of $2.20, below the market estimate of $2.26, leading to a 2.1% drop in shares to $218.99 in after-hours trading, indicating investor concerns about its future outlook.
- Tesla Earnings Outlook: Analysts expect Tesla Inc. (NASDAQ:TSLA) to post earnings of 45 cents per share on revenue of $24.78 billion after the market closes, with shares increasing 0.4% to $432.49 in after-hours trading, demonstrating market confidence in its ongoing growth.
- Starbucks Earnings Forecast: Starbucks Corp. (NASDAQ:SBUX) is projected to report earnings of 59 cents per share and revenue of $9.73 billion, with shares slipping 0.1% to $95.70 in after-hours trading, yet the market remains cautiously optimistic about its performance.
- Earnings Miss: Packaging Corporation's Q4 2025 Non-GAAP EPS of $2.32 fell short by $0.09, indicating pressure on profitability that could undermine investor confidence.
- Revenue Growth Weakness: Despite a 9.8% year-over-year revenue increase to $2.36 billion, the figure missed expectations by $80 million, reflecting soft market demand and intensified competition.
- Annual Performance Overview: The full-year net income for 2025 was $774 million, or $8.58 per share, while excluding special items, net income was $888 million, or $9.84 per share, highlighting earnings volatility influenced by special items.
- Stock Price Reaction: Following the earnings report, shares fell 1.62% in after-hours trading, indicating a negative market reaction to the results and prompting investors to reassess the company's future growth potential.
- Financial Performance: In Q4 2025, Packaging Corporation reported a net income of $102 million, or $1.13 per share, despite a $1.32 decline from Q4 2024, indicating resilience in profitability amidst challenges.
- Sales Growth: The company achieved net sales of $2.4 billion in Q4 2025, a 14.3% increase from $2.1 billion in Q4 2024, reflecting sustained demand and market share growth in the packaging sector.
- Impact of Special Items: Excluding special items, diluted EPS was $2.32, down $0.15 year-over-year, primarily due to lower production and sales volumes along with rising operating costs, highlighting the cost pressures faced by the company.
- Future Outlook: The company anticipates Q1 2026 earnings of $2.20 per share, facing seasonal slowdowns and rising costs, yet remains optimistic about increased daily production and price improvements in its packaging operations.








